Judge tosses Arkansas marijuana dispensary applicant’s suit over scoring

March 24, 2023 · MJ Biz Daily

A federal judge in Arkansas dismissed several claims by a medical marijuana dispensary applicant, including tortious interference and racial discrimination during the state’s license-evaluation process.

According to Law360, U.S. District Judge James Moody Jr. ruled that tortious interference doesn’t apply to the claim made by Absolute Essence because it’s still an applicant and doesn’t have any property or business rights.

Absolute Essence’s suit in February 2022 alleged that the company that state regulators hired to score applications, Public Consulting Group Holdings and affiliate Veracious Solutions, was discriminatory and chose to deny the state’s limited number of retail licenses to minority-owned business applications.

The licensing process was halted as a result of the lawsuit, which was sent to federal court last April.

That month, Boston-based Public Consulting Group moved to have the complaints against it dismissed because Absolute Essence didn’t exist until two years after the application was scored.

In May, Veracious Compliance Solutions of Henderson, Nevada, moved to have the case dismissed because it didn’t have final say on the process, plus state regulators had to approve the application scores.

The judge agreed, noting the discrimination claims were dismissed because Absolute Essence has neither property nor a contract, which is required for a claim under the Arkansas Civil Rights Act.

According to Law360, the judge also dismissed:

  • An additional claim of fraud.
  • A claim under the Equal Protection Clause.
  • A civil conspiracy claim.

(Full Story)

In categories:Dispensaries Legal
Tags:
Next Post

New York’s Long Island opts out of marijuana retail, limiting options for store operators

When New York regulators announced plans to double recreational marijuana retail licenses to 300 for social equity applicants, local cannabis operators and other industry advocates applauded the news. But behind the scenes, concerns were mounting over the challenge of finding affordable cannabis…
Read
Previous Post

New York Gov. Proposes Crackdown on Unlawful Cannabis Shops

New York Gov. Kathy Hochul (D) is proposing legislation to crack down on unlicensed cannabis storefronts in the state, including fines of up to $10,000 per day for unlawful operations. The legislation would also give additional enforcement power to the Office of…
Read
Random Post

SXSW 2023 will have conference tracks dedicated to cannabis and psychedelics

The conference portion of the festival is divided into 25 tracks, ranging from civic engagement and climate change to food and, yes, weed and mushrooms. South by Southwest 2023 (SXSW) is right around the corner. And this year, those who attend…
Read
Random Post

Intoxicating Hemp, Innovation Drive 2023 Cannabis Product Trends

Consumers are driven by price and drawn to new products. As the year edges closer to an end, a look back at the legal cannabis industry shows some new consumer trends alongside a range of responding business adjustments. The Three…
Read
Random Post

Connecticut records $23 million in cannabis sales in May

Nearly $23 million in legal cannabis sales was recorded in the month of May - an increase from April. The state Department of Consumer Protection (DCP) recorded approximately $21 million in adult-use cannabis and medical marijuana sales last month. Of the $23…
Read
Random Post

Missouri Cannabis Rollout Under Fire for Exclusion of Some Incarceration Data

The agency examined incarceration rates over the past 20 years, which ignored data from the 1980s. The United States’ War on Drugs spans decades, but Missouri’s licensing process failed to consider much of the impact the policy had on disadvantaged communities,…
Read